Rideshare insurance in Texas

It is easy to become a Lyft driver or Uber driver. You are almost ready to go if you own a relatively new four-door car and have your driver’s license in good standing. Most people don’t realize that your car insurance might not cover you if an accident occurs while you work. You may be asking, “Do I require special insurance for Uber and Lyft?” The answer is likely yes. To have sufficient coverage for your rideshare vehicle, you will need Texas rideshare car insurance. Rideshare insurance Texas coverage is available through your company and is usually inexpensive.

How insurance works with rideshare drivers

When you work for a Transportation Network Company (TNC), like Lyft or Uber, your rideshare insurance will be added to your car policy. Your rideshare app will tell you when you are being considered at work. To better understand which part of your car insurance is working for you, there are four periods.

  • Period 0: Also known as offline, the rideshare app works when you’re not connected to the internet. You are covered under your vehicle insurance policy.
  • Period 1: You are labeled available and logged in, waiting for a request to ride. Rideshare insurance will be active once the app is “on”. However, it is limited to period 1 liability insurance.
  • Period 2: You have accepted or matched a ride, and you are on your way to collect the passenger. Texas rideshare insurance is fully in force for periods 2 and 3.
  • Period 3: You have taken the passenger(s) to your vehicle. As long as passengers are inside your vehicle, you are fully covered.

Uber and Lyft provide insurance for their drivers up to a certain point, but you might want more coverage.

Texas rideshare insurance requirements

The state’s insurance requirements often determine minimum rideshare insurance coverage. Texas requires rideshare drivers to have more coverage than the minimum. For personal drivers, the minimum liability insurance in Texas is:

  • $30,000 per person, per accident for death or injury
  • $60,000 per accident for death or injury to all persons
  • $25,000 per accident for property damage

Texas requires rideshare drivers have at least:

  • $50,000 per person, per accident for death or injury
  • $100,000 per accident for death or injury to all parties
  • $25,000 per accident for property damage during the 1st period
  • $1 Million in the period 2 and 3.

The minimum Texas requirements for Uber and Lyft coverages are met. Only the deductible amount is different between Uber and Lyft. Lyft’s deductible amounts are $2,500, while Uber’s is $1,000. You may find that their coverage is not sufficient for you or your needs, and your personal insurance company may allow you to lower your deductible. The small premium increase may be worth it if you add ridesharing to your existing insurance company.

Texas ride-share driver requirements

Uber driver Texas requirements are identical. You will need the following information to be able make money driving for either one of these rideshare companies:

  • You will need to download the app to your smartphone.
  • Uber drivers must be at least 23 and Lyft drivers must be 25 years or older
  • You must have at least one year driving experience with each company, or three years driving with Uber if your age is 23.
  • You must have a Texas driver’s licence. If you are a military spouse or active duty soldier, an out-of state license is acceptable to drive Lyft.
  • To pass the screening which includes a criminal background check and driving history
  • For Uber, a four-door vehicle that is newer than 15 year or for Lyft, or an older vehicle for Lyft.
  • A vehicle model approved according to Lyft and Uber
  • Texas License Plate on Your Car
  • Photo evidence of vehicle insurance
  • A certificate of passing inspection

Texas rideshare insurance companies

Texas does not offer rideshare insurance from all car insurance companies. These are some of the top car insurance companies that offer rideshare insurance.

  • Erie: You can add a ” business use” to your Erie Texas auto insurance policy. This will provide rideshare coverage at a modest fee.
  • Progressive: This insurance company typically offers affordable vehicle coverage, and the option to rideshare coverage.
  • USAA: USAA membership is available to military personnel and their families. Ridershare coverage can be added for as low as $6 per monthly.
  • State Farm: State Farm bridges the gap between your personal policy and TNC coverage, by charging you the lowest deductible.
  • Allstate: For period 2 and 3, the carrier’s Rider For Hire coverage is in full effect. Your personal coverage will be in effect for the duration of period 1.

What to do when you are involved in an accident while driving for a rideshare company in Texas

Report an accident to your rideshare company if you are involved. Call the police to report it. For insurance purposes, the rideshare app will give details about which time period you were when the accident occurred. It’s helpful to gather information for all parties, such as:

  • Phone numbers and names
  • Driver’s license details
  • Numbers of vehicle registrations
  • Number of the license plate
  • Your insurance information


Are you required to have additional insurance if you are driving for rideshare in Texas

Lyft and Uber offer rideshare insurance, but it may not be sufficient for you. Additional rideshare coverage offers three benefits: affordable premiums, a lower deductible, and greater coverage limits.

What insurance covers you if you are involved in an accident while driving a rideshare vehicle?

Ridershare insurance bridges the gap between personal insurance and commercial car insurance. Rideshare insurance is available if your app has been activated and you are still waiting for a ride request. It will cover passengers picked up by your vehicle or riders.

Which providers offer rideshare insurance for Texas?

Rideshare coverage is not available as an add-on from all carriers. Erie, USAA, Progressive and Allstate are the most prominent providers of rideshare coverage. Even though rideshare insurance Texas premiums can be affordable, it is worth looking around for car insurance rates to find the best deal.